WEBVTT 00:00.000 --> 00:04.600 There's some breaking news out of Europe with one country that wants to put to a vote the idea of 00:04.600 --> 00:10.780 taxing citizens no matter where they live. US-style citizenship-based taxation. There's a sinister 00:10.780 --> 00:13.940 twist in this one. We're going to share the article and what you should know. 00:16.820 --> 00:22.320 And we told you a couple months ago that in France, one of the candidates for high office said 00:22.320 --> 00:26.700 let's have US-style citizenship-based taxation. No more leaving France, 00:26.700 --> 00:32.740 keeping the passport and not paying. Citizens must pay. Now that candidate did not win, 00:33.120 --> 00:38.320 but what have I told you for years? When the ideas get out into the ecosystem, 00:39.240 --> 00:43.560 someone else will eventually pick up and run with them. And that is the case in France. We're 00:43.560 --> 00:47.300 going to share the article from EME. I'm here in Madrid. We're filming Live Like a King. Hope 00:47.300 --> 00:50.060 you'll check out our Live Like a King in Kuala Lumpur. We've got a lot more that we're 00:50.060 --> 00:54.220 filming coming up, but I wanted to take a moment to share this with you. French finance 00:54.220 --> 00:58.880 committee adopts Bill aiming to introduce citizenship-based taxation. Now we've told you 00:58.880 --> 01:03.880 for years, the United States does this. If you're a US passport holder, you're going to be under 01:03.880 --> 01:07.400 the radar of the IRS no matter where you move. You have to fill out tax returns. You may have to 01:07.400 --> 01:12.440 pay something. We help Americans and many other nationalities legally reduce their taxes, 01:12.440 --> 01:18.360 but it is harder for Americans. There is more to do. France wants to do the same. 01:18.640 --> 01:23.220 And what you're going to see in this article is a number of things I've been telling you 01:23.220 --> 01:28.120 for years. It's all coming home to roost. France's finance committee has adopted an amendment 01:28.120 --> 01:34.140 to establish a quote-unquote targeted universal tax requiring French citizens living in countries 01:34.140 --> 01:38.840 with lower tax rates to continue paying taxes to France. So we're going to get into the details 01:38.840 --> 01:42.760 here in a moment, but basically what this is speaking to is what I've told you for years, 01:42.920 --> 01:48.140 they may look at some sort of backdoor tax. The United States is pretty bold. We tax you no 01:48.140 --> 01:50.760 matter where you live. Yes, there's exclusions. Yes, there's exemptions. If you're an 01:50.760 --> 01:55.800 entrepreneur, you can ring fence a lot of your income and reduce your tax rate usually to the 01:55.800 --> 02:01.300 single digits, but I've told you other countries will bring in a tax on citizens through the 02:01.300 --> 02:04.880 backdoor. And just to be clear, that means that means if you hold a French passport, 02:05.500 --> 02:10.540 even if you don't live there, you may be taxed. We'll talk about that. The proposed system 02:10.540 --> 02:15.440 would require French nationals who lived in France for at least three years within the 02:15.440 --> 02:21.820 last decade before relocating to pay taxes equivalent to their hypothetical French tax burden. 02:22.160 --> 02:27.200 So there's the beginning of the sinister twist. If you have lived there for three out of the last 02:27.200 --> 02:31.180 10 years, they're going to keep you in that tax debt. Kind of what California was talking about, 02:31.280 --> 02:34.760 hey, if you lived here for any part of the last decade, we're going to go after you and we're 02:34.760 --> 02:38.800 going to basically say, hey, it's as if you never left. So France is saying if you lived here 02:38.800 --> 02:43.620 for three of the last 10 years, if you have French citizenship by descent, if you grew 02:43.620 --> 02:47.300 up in France and moved away a long time ago, perhaps you will be exempt. But if you've lived 02:47.300 --> 02:51.740 in France for three of the last 10 years, they want to rope you in and make you pay taxes 02:51.740 --> 02:56.640 equivalent to your hypothetical French tax burden to prevent double taxation. How kind of them. 02:57.120 --> 03:01.000 The amendment outlines a tax credit mechanism for French citizens living abroad. 03:01.420 --> 03:05.220 Here's the second part of the sinister twist and what I've been telling you for years, 03:05.440 --> 03:09.420 somebody would do this. Under this framework, they must pay taxes equivalent to what they 03:09.420 --> 03:12.780 owe in France, but they will receive a credit matching any taxes already paid in their 03:12.780 --> 03:18.380 country of residence that standard. But unlike the American model of citizenship based taxation, 03:18.680 --> 03:23.380 which affects all US citizens globally, the French proposal targets only those living 03:23.380 --> 03:29.140 in countries with tax rates at least 50% lower than France's. For years now, we saw more 03:29.140 --> 03:34.680 headlines this summer, a number of French citizens moving to Belgium for lower taxes. 03:35.080 --> 03:39.260 Imagine, I know Belgium has a few things going for it, but imagine in general moving to 03:39.260 --> 03:43.820 Belgium for lower taxes. Many people over the years, including recently from France, 03:43.980 --> 03:48.700 have moved across the border to French speaking Belgium to lower their taxes. We'll talk about 03:48.700 --> 03:53.700 that in a second. Under this proposal, you may be able to get away with doing that and they 03:53.700 --> 03:58.040 leave you alone. But to me, you know, one of the things people say is, well, I don't want to 03:58.040 --> 04:01.080 leave my family. I don't want to do this. I don't want to do that. You know, if you're 04:01.080 --> 04:04.600 going to make a move, what do we always say? If you're going to move, you might as well 04:04.600 --> 04:08.400 move. If you're going to move to lower your taxes, you might as well move to somewhere 04:08.400 --> 04:11.040 where you can lower them dramatically. If you're going to upend your life, if you're 04:11.040 --> 04:15.200 going to put the kids in different schools, yes, you want the good lifestyle. We film 04:15.200 --> 04:17.560 Live Like a King to show you, you can have a good lifestyle in a lot of places. 04:18.440 --> 04:22.820 Yes, you can have a good lifestyle, but why not lower, you know, why do you want to lower 04:22.820 --> 04:26.300 your taxes just a little bit? It's like people in the US say, oh, I'm moving from 04:27.200 --> 04:31.120 California to Arizona. Okay, you're going to save a few percentage points, but you're going 04:31.120 --> 04:37.080 from, you know, net net, you know, 50% tax to 44% tax. Is that worth all that effort? 04:37.080 --> 04:41.400 Same thing. Is it worth it to move from France somewhere else in Europe that has, 04:41.460 --> 04:47.160 you know, relatively high taxes for most people? Well, that's what France is hoping you'll do, 04:47.240 --> 04:53.120 because they no longer believe that as their citizen, you're entitled to being part of the 04:53.120 --> 04:59.260 community. You are now, as Doug Casey says, you are now a milk cow. You're a dairy cow to be 04:59.260 --> 05:04.200 milked. And so if you don't go where they want you to go, well, they're going to tax you 05:04.200 --> 05:08.500 as if you never left France. So that's the sinister twist. Again, I told you, 05:08.880 --> 05:12.880 and I said this specifically about Europe in the last year or two, they might say, hey, 05:12.960 --> 05:17.020 if you move somewhere we like, if it's on the nice list, okay, go and save your 10%, 05:17.020 --> 05:22.320 go and save your 20%. By the way, who controls 50% of what? They can raise their taxes as high 05:22.320 --> 05:28.460 as they want. Remember the 75% tax rate was not under a hold. I mean, 50% of any number 05:28.460 --> 05:33.100 they choose, there's people in the United States saying bring back 91%, you know, 05:33.100 --> 05:39.660 top tax rates that existed under Eisenhower. Okay, if you pay 50% of 91%, they get to choose 05:39.660 --> 05:44.540 what you pay. The scope extends beyond income tax to include inheritance tax, capital gains, 05:44.660 --> 05:49.620 and dividends that are roping it all in. This is the repeat of a 2019 fact-finding mission 05:49.620 --> 05:54.960 from Finance Committee Chairman, Eric Coquerel and Jean-Paul Matai, where they talked about 05:54.960 --> 05:58.720 applying a sort of citizenship-based tax to those who moved to low-tax jurisdictions. 05:59.520 --> 06:02.200 I don't remember if we read that report particularly, but I've been telling you 06:02.200 --> 06:06.040 for four or five years that we read these think tank reports and these little things that we come 06:06.040 --> 06:10.320 out through the tax journals we read, and that's where I've gotten this idea. I'm not just making 06:10.320 --> 06:15.940 it up. It's not just, hmm, it's coming to me. I read stuff that the average person doesn't see 06:15.940 --> 06:20.640 that's not in the newspaper because we get these arcane tax journals and newsletters and all 06:20.640 --> 06:24.640 the stuff we subscribe to around here for our research work. And we see the kind of stuff 06:24.640 --> 06:29.040 that they're talking about behind closed doors. And I figure, hey, how many years is that 06:29.040 --> 06:34.680 before that kind of thing becomes a reality? So in France, it wasn't Lucy Caste, who was the 06:34.680 --> 06:38.700 person running for, I believe, was president early this summer. She did not get in, but she 06:38.700 --> 06:42.400 wasn't the first one in France to propose this. And so I've been telling you for years, 06:42.940 --> 06:50.100 other countries, Canada, perhaps Australia, European Union countries, are at least going 06:50.100 --> 06:53.220 to make it harder for you to get out. And I've said there's going to be a movement 06:53.220 --> 06:58.700 towards some sort of backdoor citizenship-based taxation. So in the case of France, it will 06:58.700 --> 07:03.780 be, if you move to somewhere we like, great, we will perhaps leave you alone, at least until 07:03.780 --> 07:08.220 we jack up our taxes so high that that other place looks like a tax haven in comparison. 07:08.940 --> 07:13.240 The National Rally Party supports the measure with their member of parliament, Jean-Philippe 07:13.240 --> 07:18.020 Tanguay, linking it to citizenship rights and duties. Who said that first? As Western 07:18.020 --> 07:22.920 countries get increasingly more desperate, as they realize they're broke, as they lose their 07:22.920 --> 07:30.040 share at the top of the world economy food chain, because they've been there just kind of, 07:30.240 --> 07:34.560 I mean, we're here in Spain. And Madrid has been very nice. But I've said for years, 07:34.840 --> 07:40.480 how is Spain the 10th largest economy in the world? Kind of by default, as the Indonesians and the 07:40.480 --> 07:45.740 countries like that pick up steam, the Brazilians, it all, a place like Spain, a place like France, 07:45.840 --> 07:49.420 it's not going to be at the top of the food chain anymore. You may not realize 07:49.420 --> 07:53.940 that sitting in Europe or sitting in North America, that your country has increasing competition, 07:54.440 --> 07:59.740 I realize it traveling all around the world. And so what I tie that to is this increasing push 07:59.740 --> 08:04.860 among politicians in these increasingly broke Western countries of saying, it used to be, 08:05.280 --> 08:10.300 oh, you're French, you're one of us, please, you're living in Dubai, come to the embassy, 08:10.400 --> 08:15.820 we'll have snacks for you once a month. There are countries that do that. They're 08:15.820 --> 08:20.740 shifting from that. Oh, thank goodness you're one of us. So we don't care if you're paying 08:20.740 --> 08:25.620 0% tax, as long as you don't, you know, driving the roads and bridges. Now it's, oh, you carry our 08:25.620 --> 08:31.640 passport. Oh yeah, you're one of us. Oh, well to be one of us, you have to pay. You don't get to 08:31.640 --> 08:34.920 move somewhere else. And by the way, we don't care if you move somewhere else because you 08:34.920 --> 08:39.760 just happen to like it better. We don't care why you move, because what I've seen personally, 08:39.840 --> 08:44.300 having given up U.S. citizenship, sure, you know, not having to deal with the IRS, 08:44.300 --> 08:50.080 that's always a nice thing. Was that the reason I did it? No, not really. You know, and so 08:51.360 --> 08:55.200 how many people believe that? I'm sure there's a lot of people who don't. And I'm sure people 08:55.200 --> 08:58.820 running for office talking to, with this article mentions, you know, the average middle-class 08:58.820 --> 09:03.900 worker, do you think they take very kindly to my choice to leave? No, I'm a political target, 09:03.980 --> 09:08.740 and I realize that. And so you can be a political target in your country. Oh, yeah, 09:08.740 --> 09:16.140 he's living for Dubai. And so we're seeing this serious shift from you're one of us to be one of us 09:16.140 --> 09:21.680 if you pay. I've predicted. Now, what have I said? If you hold a Western passport, you need to have 09:21.680 --> 09:26.200 a second passport. Good news is if you're French, you can't have a second passport. We've had a few 09:26.200 --> 09:30.340 French citizen clients over the years who were entitled to other European citizenship by descent. 09:31.000 --> 09:34.240 You can go to the Caribbean and get citizenship by investment in under a year 09:34.240 --> 09:38.540 by making a donation. You can go to other parts of the world and make real estate 09:38.540 --> 09:41.120 investments or other investments and get citizenship in under a year. 09:41.380 --> 09:44.920 Those programs are going up in price. And I would argue it's not entirely coincidental 09:44.920 --> 09:49.220 that the European Union pushes back on some of the Caribbean programs to add more requirements, 09:49.420 --> 09:53.940 add more steps, which has lengthened the process. Why? They don't want you leaving. 09:54.520 --> 09:58.400 They don't want they don't want you to pay $200,000 and have a good at a jail 09:58.400 --> 10:02.520 free card that if they decide to tax you for the privilege of being born there, 10:03.260 --> 10:06.460 even if you don't want to live in their country a single day a year anymore, 10:06.940 --> 10:12.340 they don't want you to be able to leave. They don't like that you have options. It angers them. 10:12.740 --> 10:16.140 There's a lot of people in Paris working for think tanks who don't pay taxes at all 10:16.140 --> 10:19.760 that want you to pay a lot of taxes. Those are the ones that don't want you to have options. 10:20.300 --> 10:23.780 And so what do you do when someone doesn't want you to have options? Well, that's a pretty 10:23.780 --> 10:27.820 strong single to me that you need to have options. Like when someone who wants to take 10:27.820 --> 10:32.600 something from you wants to stop you from having options. That's like, yeah, I think I need something. 10:33.120 --> 10:38.940 Now, again, I've been saying this for years. I'm ringing the alarm bell now. Who knows if this 10:38.940 --> 10:43.340 makes it through? But it's the second time in a matter of months we're talking to you about this. 10:43.740 --> 10:48.440 I don't think France will be the first or the last. I think we've talked about how Australia's 10:48.440 --> 10:53.180 kind of tiptoeing ever so slowly into this. If there's talk of this in Canada, there's 10:53.180 --> 10:57.800 increasing talk just from the average person that you see, how dare you carry our passport 10:57.800 --> 11:03.220 if you don't pay. That is not what people said even 10 years ago in the early days of Nomadic 11:03.220 --> 11:07.240 Capitalist. It was, hey, if you don't want to live here, that's cool. People are more and more 11:07.240 --> 11:11.580 angry. And so you need a second passport. Why? Because if one day something like this goes 11:11.580 --> 11:15.900 through and you want to live somewhere else, the answer is, okay, well, you know what? 11:16.580 --> 11:19.620 If I have to pay millions of euros to a country I don't even live in, 11:20.400 --> 11:24.780 maybe not only for the money's sake, because it's personally insulting, I don't want to be French, 11:25.120 --> 11:28.620 or I don't want to be whatever other country tries to do this. And how am I going to get out of that? 11:28.980 --> 11:34.000 Well, the process is longer than it was a year ago to get a second passport by investment. 11:34.460 --> 11:38.640 The process will probably get longer as more little bureaucratic burdens get added. 11:39.320 --> 11:43.340 Good idea to do it now. If you start today, if you go to nomadiccapitalist.com 11:43.340 --> 11:48.460 slash apply, and you want to work with us, yeah, within a year you can have a second passport in 11:48.460 --> 11:53.720 many cases. And so then you're prepared no matter what happens. What you don't want to do is wait 11:53.720 --> 11:57.720 for the law to go through and then be scrambling as so many people over the years have done 11:57.720 --> 12:02.740 when they come to us. And hey, we can save them money in the long run, but it's too late to 12:02.740 --> 12:06.440 take the big hit, just save the big hit because they waited too long. So you'll want to get 12:06.440 --> 12:10.600 the second passport before you need the second passport. At a certain point, I just enjoy 12:10.600 --> 12:16.420 having passports at this point. I'm beyond the point of strategy for the most part. Although, 12:16.520 --> 12:21.640 hey, more options are more options. But if you're looking at your second passport, you got to have 12:21.640 --> 12:25.860 that one before you need it. I've spent a lot of money, I've invested, I've done a lot of 12:25.860 --> 12:29.440 stuff over the years to get citizenships because I wanted to have different options. 12:29.660 --> 12:33.560 I wanted to have different places I can call home. And there is a sentimental side to it 12:33.560 --> 12:37.540 as well. But first, you want to make sure you can protect yourself, protect your wealth. 12:37.540 --> 12:43.800 And as someone who's been through this, protect yourself from your own country turning on you 12:43.800 --> 12:51.020 and flipping what you thought was a cherished benefit into an entitled obligation on you. 12:51.420 --> 12:56.740 We'd be happy to help nomadcapitalist.com slash apply. We'll keep you updated. But the next 12:56.740 --> 13:00.760 update, it may be too late. And it may be, hey, you got to pay.